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It’s tough to know if you’re really on track with your retirement savings until you crunch the numbers. You’ll need to factor in things like retirement expenses and any income sources you’ll have lined up. Of course, sitting down to think about all these things isn’t always easy — especially when you’re juggling other financial priorities.
But seeing how your retirement savings compare to others might give you the push you need. And checking out average 401(k) balances can be a great starting point. We’ve taken a peek under the hood at the average 401(k) balances by age group. Warning: These numbers might just change how you view your own savings goals.
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Average 401(k) balances by age
Average 401(k) balances vary widely by age, which makes sense when you break it down. Early in your career, you’re likely earning less and juggling other financial priorities, so it’s no surprise if your 401(k) balance starts out modest.
But as you move up in your career and your earnings grow, hopefully you’re able to set aside a bit more for retirement. Those extra contributions, along with time and the power of compounding, can help your 401(k) balance grow significantly by the time you’re ready to clock out of the workforce.
To give you a better idea of where savers stand at different life stages, here’s a look at the average 401(k) balances by age group. We’ve pulled the numbers from Vanguard’s 2024 “How America Saves Report,” which analyzes nearly 5 million retirement accounts.
| Age | Average 401(k) Balance | Median 401(k) Balance |
|---|---|---|
| Younger than 25 | $7,351 | $2,816 |
| 25 to 34 | $37,557 | $14,933 |
| 35 to 44 | $91,281 | $35,537 |
| 45 to 54 | $168,646 | $60,763 |
| 55 to 64 | $244,750 | $87,571 |
| 65 and older | $272,588 | $88,488 |
| All age groups | $134,128 | $35,286 |
Data source: How America Saves 2024, Vanguard. Table by author.
It’s also helpful to understand the difference between average and median balances. You’ll notice that average balances tend to be much higher, often skewed by a few savers with larger 401(k) accounts. On the other hand, the median provides a more realistic picture of what a typical saver might have. Think of the median as the middle number — half of savers have more than this balance, and half have less.
Retirement goes beyond your 401(k)
If you’re below the average numbers, don’t be discouraged. The 401(k) is only one of many sources of retirement income. You might have individual retirement accounts (IRAs) and personal savings, as well as Social Security benefits. And if you plan to do part-time or gig work during retirement, you might not need as much saved up right now. But this assumes you’ll be physically able to work during retirement and that opportunities will be available.
On the flip side, if your retirement savings are above these numbers, don’t get too excited just yet. This table simply gives a snapshot of what others have saved. This doesn’t necessarily mean it’s enough to support you comfortably in retirement. You’ll need to consider your retirement goals, like where you want to live and the lifestyle you envision, to determine how much you really need.
So, no matter where you stand, if you want a bit of cushion and to feel confident about your retirement, here are a few quick moves to consider:
- Build an emergency fund.
- Pay down high-interest debt.
- Max out your IRA.
- Watch your spending.
- Automate your savings.
- Build profitable skills.
Retirement planning can feel like a tricky puzzle, with a bunch of factors at play. It gets even more complicated when you think about how things like your health and ability to work can change over time. And even if you have a few million dollars saved up, anxiety can still creep in.
Instead of stressing over what’s out of your control, focus on what you can manage now, like your daily habits. Save and invest as much as you can, while also paying attention to your health. Even small changes each month can pay off over the long run and set you up for a rewarding retirement.
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